Alcatel-Lucent downplays financial woes

Alcatel-Lucent has downplayed speculation that the company is facing serious troubles after issuing its third financial warning since merging at the beginning of 2007.

Discussions about the fate of the company surfaced after a board meeting led to what Alcatel-Lucent described as "mischaracterised interpretations and erroneous speculations".

The company stressed that, despite recent disappointments, the Board supports Pat Russo and the leadership team, and the efforts it is making to adapt the firm's plans in light of this year's developments.

The board remains confident in the strategic direction taken with the merger of Alcatel and Lucent, as well as the future potential of the company.

Alcatel-Lucent will continue to enhance value for shareholders, employees and customers worldwide, the board stated.

"Alcatel-Lucent is taking steps to accelerate the execution of its restructuring programme and to implement additional cost reduction plans in markets which require further action," said Russo.

The board will review the plan being developed by management during the next scheduled meeting on 30 October, prior to the release of the company's third-quarter results.